Nifty gains as risk sentiment improves

Bank Nifty rebounds, holds gains; above 52500 signals further upside momentum ahead

Motilal Oswal Wealth Management Mumbai

Nifty index opened positive and after a slight slip to 22550 zones in the first hour, it picked up strength and improved momentum for the rest of the session. It moved towards 23000 zones and closed near its higher band with gains of around 260 points. It formed a bullish candle on the daily frame with longer lower shadow indicating buying intact at support levels. Now it has to hold above 22850 zones for an up move towards 23200 then 23450 zones while supports can be seen at 22700 then 22550 zones.

On option front, Maximum Call OI is at 23500 then 23000 strike while Maximum Put OI is at 22500 then 22700 strike. Call writing is seen at 23500 then 23200 strike while Put writing is seen at 22500 then 22800 strike. Option data suggests a broader trading range in between 22500 to 23500 zones while an immediate range between 22700 to 23200 levels.

S&P BSE Sensex index opened on a flattish note but improved momentum after the initial tick as bulls staged a strong recovery. It moved the index towards it day high in the second half and eventually closed near the same with gains of around 790 points. On the daily chart it formed a bullish candle with a longer lower wick indicating buying interest is intact at lower levels. Now it has to hold above 73800 for an up move towards 74500 and 75000 zones while support can be seen towards 73500 and 73000 zones.

Bank Nifty index opened on a flattish note and witnessed some pressure in the initial part of the session, after which it traded in a range of around 300 points for most of the day. Strong buying interest emerged in the latter part which lifted the index towards 52700 zones. It managed to hold its gains and ended the session on a positive note. It formed a bullish bodied candle on the daily scale with a lower wick indicating buying interest visible at lower zones. Now it has to hold above 52500 zones for a bounce towards 53000 then 53250 levels while a hold below the same could lead to weakness towards 52250 then 52000 zones.

Nifty future closed positive with gains of 1.25% at 23050 levels. Positive setup seen in Trent, IEX, Godrej Properties, PNB Housing, BSE, Titan, NMDC, Larsen and Toubro, Nykaa, Axis Bank, Bajaj Finance, RBL Bank and Dmart while weakness seen in Reliance, Marico, Jindal Steel, Swiggy, VBL, Colpal and Max Health.

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